Insurance Companies Reward Low-Mileages

(NewsUSA) - With gas prices on the rise, more Americans are using public transportation, carpooling or consolidating their errands to reduce their time on the road.

And insurance companies are starting to take notice.

Driving doesn't just use gas, it also wears down vehicle components.

Heavily used vehicles need parts replaced more often. Extensive driving can reduce the number of years that a car or truck might last.

Some insurance companies now reward low-mileage drivers. For example, GMAC Insurance, one of the largest automobile insurers in the U.S., created its opt-in Low-Mileage Discount Program www.lowmileagediscount.com) to OnStar subscribers.

Customers who drive less than 15,000 miles a year can save up to 54 percent on their car insurance.

Drivers who choose the program allow GMAC Insurance to determine their mileage through their OnStar program, a communication technology available on GM vechicles. GMAC Insurance uses vehicles' odometer readings to determine customers' discounts.

The insurance company does not receive any information unrelated to mileage and does not penalize people who drive over 15,000 miles each year.

"Rising gas prices have become a serious issue in this country over the past year, and it is clear that drivers are cutting back," says John O'Donnell, vice president of business development at GMAC Insurance, "We want our customers to be aware of anything they can do to save money."

The company offers these tips to drivers hoping to cut back on gas:

1. Maintain your vehicle. Following your vehicle's maintenance schedule will help prevent damage and reduce the cost of future repairs.